The status of the Corporate Transparency Act, including whether and when companies are required to file beneficial ownership information reports, continues to change frequently due to rapid developments in Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al. (“Texas Top Cop Shop”).

In a surprising turn of events, on December 26, 2024, the Fifth Circuit Court of Appeals (the “Fifth Circuit”) vacated the portion of the Fifth Circuit’s December 23, 2024 order that granted the U.S. government’s motion to stay the nationwide preliminary injunction enjoining enforcement of the Corporate Transparency Act that the U.S. District Court for the Eastern District of Texas issued on December 3, 2024.

As confirmed by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) in a notice on December 27, 2024, this latest development means that “the injunction issued by the district court in [Texas Top Cop Shop] is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN.”  FinCEN’s notice also stated that “reporting companies may continue to voluntarily submit beneficial ownership information reports.”

Companies should remain alert as further developments are expected.

For more information about the Corporate Transparency Act and its reporting requirements, please visit FinCEN’s website located at https://www.fincen.gov/boi.